Cryptocurrency exchange KuCoin will lay off 30% of its staff

Journalist Colin Wu reported that cryptocurrency exchange KuCoin will lay off 30% of its staff

The main reason for the upcoming layoffs is the company's falling profits, which was the result of a lawsuit from the U.S. authorities

The management of the cryptocurrency exchange KuCoin will lay off 30% of the staff, reported journalist Colin Wu, citing confirmation from three employees of the company.

The number of KuCoin's staff is about 1 thousand people. The main reason for the upcoming layoffs is the company's falling profits after it began legal proceedings with the U.S. authorities, the journalist wrote.

KuCoin representatives explained that this is a normal performance evaluation. The crypto exchange is actively working on compliance and focusing on business development.

KuCoin crypto exchange was founded in 2014 and registered in Seychelles. It is among the top 10 largest crypto platforms, with daily trading volume exceeding $346 million, according to Coingecko.

New York State Attorney General Letitia James filed a lawsuit against cryptocurrency exchange KuCoin in March, alleging that the platform violates securities laws by offering tokens that meet the definition of a security, including Ethereum, without proper registration.

In May, other major cryptocurrency companies also began making large-scale staff cuts. Analytics platform Nansen laid off 30% of its staff, while crypto exchange Binance said it plans to cut about 20% of its workforce in June.